How to Double Your Business: Pricing Strategies for Success

Reading Time: 2 min read

Doubling a business: The speaker doubled a $5 million business in under 8 weeks using a specific process, which they will outline in the video.
Three options for doubling business: The speaker presents three options for doubling a business: doubling customers, doubling price, or doubling customer lifespan. The optimal choice depends on the business and its goals.
Doubling customers: If the business doubles its customers, it will double its revenue and profit, but may also increase costs.
Doubling price: If the business doubles its price, it will increase its revenue and profit, but may also reduce the number of customers.
Doubling customer lifespan: If the business doubles customer lifespan, it will increase its lifetime value (LTV) and potentially reduce customer acquisition costs.
Pricing is a powerful lever: The speaker emphasizes that pricing is one of the most important levers to increase profits, and that testing different prices is crucial.
Survey and research: The speaker suggests conducting surveys and research to understand customer demographics, values, and preferences to inform pricing decisions.
Communicate changes internally and externally: When changing prices, it's essential to communicate the changes to the team, customers, and new potential customers.
Be prepared for reduced sales volume: When increasing prices, the business should be prepared for a potential reduction in sales volume.
Let the math do the talking: Ultimately, the speaker advises to let the math and data determine the effectiveness of the pricing changes, rather than relying on intuition or emotions.

The video offers a hypothetical example of a business that doubles its profit by increasing the price of its CAB (Compression and Alignment Bot) program, and provides additional resources for those interested in learning more about pricing strategies.

Source: How To Make $5 Million In 8 Weeks, Alex Hormozi